Air Canada, WestJet, report strong traffic growth
The Canadian Press
Posted: Dec 5, 2012 12:25 PM ET
Last Updated: Dec 5, 2012 4:47 PM ET
WestJet's planes flew 82.6 per cent full in November, up from 77.6 per cent in the same period a year ago.
(CBC)
Canada's two largest airlines reported strong monthly demand in November as they flew fuller planes and more travellers took to the air.
Air Canada said its load factor grew 2.2 percentage points to 78.1 per cent as passenger traffic including its regional partners increased 4.6 per cent. Capacity increased 1.7 per cent.
Meanwhile, WestJet Airlines Ltd. saw its planes fly 82.6 per cent full in the month, up from 77.6 per cent a year ago, and reported passenger traffic increased 8.3 per cent.
Capacity at the Calgary-based airline increased 1.7 per cent.
WestJet chief executive Gregg Saretsky said November's load factor beat the previous record for the month set in 2010 by 4.9 percentage points.
"Our airline partnership strategy and growing number of business travellers are contributing to our positive momentum," he stated.
Air Canada's traffic to Australia up 7%
Air Canada CEO Calin Rovinescu said his airline's November's load factor was the second highest ever for the month.
Traffic gains at Air Canada were helped by a 6.9 per cent boost in Asia Pacific and seven per cent gain in Australia, Caribbean, Mexico and Central and South America markets.
Flights within Canada flew 83.5 per cent full, an increase of three percentage points as traffic grew by four per cent with a 0.3 per cent increase in capacity. The load factor for transborder flights increased 1.2 percentage points to 75.7 per cent as traffic grew 2.9 per cent amid a 1.3 per cent increase in capacity.
"These strong results underscore the effectiveness of our disciplined capacity management and our award winning product," he said in a statement.
Cameron Doerksen of National Bank Financial said WestJet's traffic numbers were a clear indication of healthy air travel demand.
"The fourth quarter is shaping up nicely," he wrote in a report, adding that his weekly surveys shows that airfare pricing in the domestic Canadian market remains strong.
Porter's load factor falls
"With this most recent record month, WestJet is on pace to exceed our 80.5 per cent load factor forecast for the fourth quarter."
Doerksen said the November numbers support his forecast of a 5.4 per cent increase in fourth-quarter revenue per available seat mile.
Meanwhile, Porter Airlines said its planes flew 54.5 per cent full in November, a decrease from 65.9 per cent a year ago.
Traffic for the regional airline decreased 11.9 per cent on a 6.7 per cent boost in capacity.
On the Toronto Stock Exchange, WestJet's shares closed up 51 cents, or 2.63 per cent, to $19.87 in Wednesday trading. Air Canada shares closed down two cents to $1.78.
Share Tools
Top News Headlines
- Royal Bank pledges not to outsource jobs for cash savings
- Royal Bank has promised it will never outsource a Canadian job to a foreign worker solely to save money. more »
- Washington police blame bridge collapse on Alberta trucker

- Washington State police say an Alberta trucker was responsible for hitting a steel beam precipitating a bridge collapse on one of the busiest routes in the American northwest. more »
- Man accused of killing child in patio crash granted bail
- Emotions ran high in a packed Edmonton courthouse Friday as Richard Suter, accused of causing a crash into a restaurant patio that killed a young boy, was granted bail. more »
- Canada ranks 3rd last in paid vacations
- Canada ranks third last among economically advanced countries in the amount of paid vacation time it guarantees its workers, a new U.S. study indicates. more »
Must Watch
Latest Business Headlines
- Canada threatens retaliation over U.S. meat-labelling rules
- The federal government is threatening "retaliatory measures" against the United States in a dispute over meat-labelling rules that Ottawa and the World Trade Organization consider discriminatory. more »
- Canada ranks 3rd last in paid vacations
- Canada ranks third last among economically advanced countries in the amount of paid vacation time it guarantees its workers, a new U.S. study indicates. more »
- MTS to sell Allstream, put $200M to pension and debt
- Manitoba Telecom Services Inc. has agreed to sell its Allstream business telecommunications arm to an Egyptian investment group and use about half of the $405 million in proceeds to reduce its pension obligations and debt. more »
- New Jersey restaurants caught selling fake alcohol
- Twenty-nine New Jersey bars and restaurants, including 13 TGI Fridays, were accused of substituting cheap booze - or worse - for the good stuff while charging premium prices. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12667.22 | 9.13 |
| DOW | 15303.10 | 8.60 |
| NASDAQ | 3459.14 | -0.28 |
| SP 500 | 1649.60 | -0.91 |
| TSX-VENTURE | 948.32 | 6.27 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Executive committee calls on Ford to address crack video allegations
- Rob Ford fired chief of staff for telling mayor to 'get help'
- Toronto Mayor Rob Ford denies using crack cocaine
- Washington police blame bridge collapse on Alberta trucker
- Man 'lucky to be alive' after Washington bridge collapse
- Canada ranks 3rd last in paid vacations
- Amanda Bynes charged for allegedly tossing bong out window
- London attack victim's widow speaks of 'our future together'
- Greg Weston: Senate scandal may be Harper's worst hour

